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Assume that Fremont Company produces kerosene as an intermediate product as follows: batch size, 4,000 gallons; cost of producing kerosene, $2,400 per batch; and selling price, $2.50 per gallon. The kerosene can be processed further to yield gasoline as follows: input batch size, 4,000 gallons; less evaporation (20%), 800 gallons; output batch size 3,200 gallons; cost of producing gasoline, $3,200 per batch; and selling price, $3.50 per gallon. Fremont should 0 Al sell the produce as kerosene and ignore the processing cost of $2,400 0 B) sell the produce as kerosene and save the additional processing cost of $3,200 O Cl process the kerosene into gasoline and gaining differential income of $400 0 D) process the kerosene into gasoline and gaining differential income of $1,200 0 El none of the above